1:3 Bonus Share: Stock in Focus After Board Announces Bonus Issue

Synopsis: A Bengaluru-based real estate developer closes FY26 with double-digit revenue growth, a bonus issue announcement, and its strongest pre-sales quarter of the year.

One of South India’s largest property developers wrapped up FY26 on a steady note, posting 11% revenue growth driven by strong momentum across its real estate, leasing, and hospitality segments. The final quarter emerged as the year’s best for pre-sales, with the board also announcing a bonus issue to mark a significant corporate milestone.

With a market cap of Rs. 19,060 Crore, the shares of Brigade Enterprises Ltd. are trading at a price of Rs. 780 per share i.e. 3.21% down from its previous closing price of Rs. 805.95. It currently trades at P/E of 29.3.

Strong Finish, Broad-Based Growth

Brigade Enterprises reported consolidated revenue of Rs.5,909 crore for FY26, up from Rs.5,314 crore in FY25. EBITDA came in at Rs.1,638 crore, while reported PAT rose to Rs.725 crore from Rs.680 crore in the previous year. Diluted EPS stood at Rs.26.33 for the full year. The board has also recommended a bonus issue in the ratio of 1:3, i.e. shareholders will get 1 bonus share on every 3 shares they hold.

The real estate segment led from the front, registering pre-sales of 6.13 million square feet valued at Rs.7,424 crore during FY26. Segment revenue grew 11% to Rs.4,002 crore. The leasing business also gathered pace, with revenue rising 12% from Rs.1,165 crore in FY25 to Rs.1,303 crore in FY26. Retail footfalls grew 7% year-on-year, while retail sales consumption jumped 18% over the same period.

The hospitality segment continued its recovery, with occupancy at 76% for the year and average room rates rising 11% to Rs.7,453. Hospitality revenue grew 13% to Rs.604 crore in FY26 from Rs.536 crore in FY25. Total collections for the year stood at Rs.7,476 crore, with net cash flow from operations at Rs.1,411 crore.

Q4 FY26 was the company’s strongest quarter for pre-sales during the year, with sales of 1.95 million square feet valued at Rs.2,521 crore – a 44% sequential increase. Average realisations stood at Rs.12,915 per square foot, up 7% over Q4 FY25. The company launched approximately 4 million square feet across seven projects in the quarter. On a year-on-year basis, Q4 consolidated revenue came in at Rs.1,523 crore versus Rs.1,532 crore, with EBITDA at Rs.430 crore and PAT at Rs.190 crore. The Board of Directors has recommended a final dividend of Rs. 2/- per equity share (20%) of Rs. 10/- each for the Financial Year 2025-26. 

About the Company

Brigade Enterprises Limited is one of India’s leading real estate developers with a strong presence across residential, commercial, retail, hospitality, and education segments. Established in 1986 and headquartered in Bengaluru, the company has developed landmark projects across cities including Chennai, Hyderabad, Kochi, Mysuru, and GIFT City. Brigade focuses on premium developments, leasing assets, and hospitality operations, supported by a diversified business model and strong brand recognition in South India’s real estate market.

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